Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Noble Energy, Inc. (NBL) a Good Stock to Buy?

Judging by the fact that Noble Energy, Inc. (NYSE:NBL) has witnessed declining sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of money managers that elected to cut their positions entirely last quarter. At the top of the heap, David M. Knott’s Dorset Management sold off the largest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $10 million in stock. Charles Clough’s fund, Clough Capital Partners, also dropped its stock, worth about $8.4 million.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Noble Energy, Inc. (NYSE:NBL) but similarly valued. These stocks are Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Equifax Inc. (NYSE:EFX), Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA), and Genuine Parts Company (NYSE:GPC). All of these stocks’ market caps are similar to NBL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CTRP 50 2407729 7
EFX 34 528510 8
ULTA 40 2044715 4
GPC 23 347677 1

As you can see these stocks had an average of 37 funds with bullish positions and the average amount invested in these stocks was $1.33 billion. That figure was $1.37 billion in NBL’s case. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is the most popular stock in this table, while Genuine Parts Company (NYSE:GPC) is the least popular one with only 23 bullish hedge fund positions. Noble Energy, Inc. (NYSE:NBL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) might be a better candidate to consider a long position.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.